Street Strategists Are Split
On How to Handle Bonds

Bondholders are in pain. And suddenly, the main question on the minds of Wall Street strategists is what to do about bonds.

Bonds have been in an unpleasant slide all year. That is because interest rates have been rising, and when rates go up, bond prices -- which move in the opposite direction of rates -- fall. People who own 30-year Treasury bonds, for instance, have seen the value of their holdings drop about 9%, as the yield on these long-term securities has risen above 7% from 5.95% at the end of 1995. Morningstar...